Have you heard of the Monetary Policy Committee?

Didn’t think so.

In the Bank of England, the Monetary Policy Committee (MPC) are the group who set interest rates. The Committee is made up of nine members: the Governor (Mervyn King – he’s mentioned in the news quite a bit), four internal members, and four members from outside the bank. These last four are appointed directly by the Chancellor to balance things out.

The MPC meet every month to set the interest rate. In April, three members voted for an interest rate rise, of either 0.25% or 0.5%, but were overturned by the votes of the other six, who wanted the rates to remain the same.

This happens to be exactly the same result as the month before.

At Limetree we’re taking confidence not only from the rates remaining unchanged, but also from the fact that the voting pattern of the nine members has also stayed the same.

Low rates mean that our customers with variable rate, tracker and discount deal mortgages pay less each month. Long may they continue.

If you have any questions about how interest rates affect mortgage payments, feel free to get in touch. One way is to post your question on this site.

Posted in Mortgages, News